What happens to price of stocks when a corporation reduces authorized amount of stocks?
Indirectly this can help the price of the stock. The fact that a company is buying it’s own stock back would indicate that the company feels it’s own shares are a bargin at the current price. It also adds support to a stocks price in that if the price begins to fall due to market conditions the company can step in and buy shares to prevent or limit continued stock depreciation.
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- What happens to price of stocks when a corporation reduces authorized amount of stocks?
